International Journal of Management and Enterprise Development (21 papers in press)
Enhancing corporate entrepreneurship: An empirical test of Stevenson's conceptualisation of entrepreneurial management
by Kamal Sakhdari, Jahangir Yadolahi Farsi
Abstract: While Stevenson's conceptualisation of opportunity-based entrepreneurial management is widely utilised and cited, less theoretical and empirical attention has been given to this framework in relation to corporate entrepreneurship (corporate entrepreneurial outputs), reflecting a firms intensity of engagement in innovation in products and services, venturing activities and strategic renewal. We hypothesised the impact of the sub- dimensions of entrepreneurial management on corporate entrepreneurship. Our observation of 298 firms providing products and services to the mining industry of Australia and Iran indicates that the underlying dimensions differently affect corporate entrepreneurship. The results also provide useful insights into the boundary conditions of Stevenson's notion of opportunity-based management style.
Keywords: Entrepreneurial management; corporate entrepreneurship; mining industry; survey.
Contesting the underperformance thesis of women entrepreneurs: firm-level evidence from South Africa
by Colin Williams, Abbi Kedir
Abstract: This paper provides one of the first known evaluations of whether enterprises in which women are owners underperform male-owned enterprises in the developing world. Until now, the widespread assumption, mostly from developed world studies, has been that enterprises in which women are owners underperform male-owned enterprises. To evaluate this in developing countries where there is a dearth of studies, cross-sectional data is reported from a 2007 World Bank Enterprise Survey (WBES) of 937 South African enterprises. The finding is that enterprises that are women-owned or jointly owned by men and women perform better than those owned solely by men, after controlling for other determinants of firm performance as well as potential sample selection bias. The outcome is a call to transcend the underperformance thesis regarding women entrepreneurs and for greater resources to be devoted to the promotion of womens entrepreneurship and womens involvement in firm ownership.
Keywords: entrepreneurship; enterprise development; gender; firm performance; development economics; South Africa.
ENTRY-BASED FINANCIAL STATEMENT ANALYSIS FOR SMALL FIRMS
by Erkki K. Laitinen
Abstract: The objective is present an entry-based approach to small business financial statement analysis. This approach is based on a procedure where financial statements are prepared after each bookkeeping (double) entry. This kind of procedure provides the management in a small firm with an opportunity to control in real time how the annual financial statements (income statement and balance sheet) are formed up from successive bookkeeping entries with the passage of time. The approach can also be used to warn about financial crisis or to direct attention to most important transactions. It is also a useful tool for small business auditors. The procedure is demonstrated by a case study based on an entry-based bookkeeping material from a Finnish micro firm. Probability of bankruptcy is used in this case to warn about financial crisis whereas a balance sheet decomposition (information) measure is employed to reflect the most important bookkeeping entries.
Keywords: Financial statement analysis; bookkeeping; small firm; bankruptcy probability; decomposition measure; auditing.
Brazilian Microfranchising Chains: Entrepreneurs Backgrounds and Perceptions of Brands and Support
by Pedro Lucas De Resende Melo, Julio Carneiro-da-Cunha, Felipe Borini
Abstract: The article aims to analyze how microfranchisees backgrounds influence their perceptions of franchisors support and the brand. Based on the theory of entrepreneurship and the elements of franchise support and brand, we conducted a qualitative field study utilizing the case study method with six Brazilian microfranchisees. Results suggest both the influence of the honeymoon period on perceptions of brands and support and the absence of competencies required to manage a business. The main contribution of this research is positing the relevance and importance of the honeymoon period in microfranchisees
Keywords: Franchising chain; Microfranchising; Microentrepreneur; Honeymoon period.
Relationship intention and service quality as combined competitive strategy
by Pierre Mostert, Thelma Luttig
Abstract: Offering superior service quality or building long-term customer relationships could offer effective strategies to create a competitive advantage. However, since not all customers desire to enter into relationships with service providers, it may be more profitable to focus relationship marketing strategies on customers with relationship intentions. The purpose of this study was to establish whether there is a relationship between relationship intention and service quality, as combining these approaches could result in formulating a greater competitive strategy than using either one of these strategies in isolation. Data were collected from 368 South African respondents. The results indicated positive relationships between respondents relationship intentions and service quality expectations and perceptions. It was also established that respondents with moderate and low relationship intentions were significantly less satisfied with the service levels they receive compared with their expectations, whereas no difference was found for those with higher relationship intentions.
Keywords: Relationship marketing; relationship intention; involvement; expectations; forgiveness; feedback; fear of relationship loss; service quality; SERVQUAL; emerging country.
Offshoring industry of Central and Eastern Europe: the perspective of service vendor and investor
by Damian Kedziora, Andrzej Hak, Andrzej Kraslawski, Timo Kärri
Abstract: Business process offshoring industry has been dynamically growing worldwide in recent years, and its rapid expansion has been particularly visible in Central Europe. Both parties involved in the organizational transformation: service buyer and vendor, can perceive such changes in a different way. The paper examines the attractiveness of a service offshoring destination, both from the investment and customer point of view, and provides comparative analysis of five countries considered as key regional competitors: Poland, Czech Republic, Slovakia, Hungary, Bulgaria and Romania. Although the cost reduction is still very important, additional factors become major influencers for offshore destination, like the potential for business process reengineering and service optimization, political stability, and access to wide talent pools of sector-experienced workers. The study is supposed to serve decision makers as a reference in the assessment of offshoring investments.
Keywords: service; European; regional; offshoring; transition; market; investment; attractiveness; outsourcing; strategy.
Development of SMEs in an Emerging Economy: Does Corporate Social Responsibility Matter?
by Masoumeh Doshmanli, Yashar Salamzadeh, Aidin Salamzadeh
Abstract: Despite its importance in development of firms, corporate social responsibility (CSR) is rarely studied in the existing literature of SMEs. Most of SMEs are focused on their daily challenges, and thus, CSR is overlooked. Therefore, the present study aims at investigating the correlation between CSR and development of SMEs- in order to find a way to develop SMEs in a more responsible manner. This study used a descriptive survey research design, and the method of data collection was field desk-study. The statistical population of the study included 720 experienced owners/ managers of SMEs in Tehran province. In addition, SPSS and AMOS are used in order to analyze the data of the study. According to Cochrans formula, the sample size was determined as 160. The participants were selected and the questionnaires were distributed among them according to convenient and random sampling. The results of the study indicated that there is a positive and significant correlation between all four dimensions of economic, legal, ethical and discretionary social responsibility and development of SMEs. It seems that facilitating legislation and giving more authority to SME owners/managers for developing their enterprises are appropriate executive procedures. Meanwhile, culture-building and education are proposed as key strategies.
Keywords: Corporate social responsibility; enterprise development; SME; Iran.
The Influence of Cognitive Frames on Small Business Entrepreneurs Perception of Risk Concepts
by Mike Peters, Johannes Brustbauer, Janette Walde
Abstract: This study aims at analysing the influence of cognitive frames on small business entrepreneurs perception of risk concepts in certain stages of their working life. A PCA based on the results of a survey questionnaire reveals that entrepreneurs perceive risk according to the entrepreneurship literature, i.e., as opportunity, as variance, and as downside loss. ANOVA results show a statistically significant influence of cognitive frames, operationalized by personal characteristics, on one risk concept: While the perception of risk as downside loss increases with education and age, it decreases when reaching a certain level of experience. The approach also reveals that personal characteristics are practically not influencing the perception of risk concepts.
Keywords: SMEs; Entrepreneurs; Perception; Risk concepts; Cognitive frames.
Early stages of service business - review and synthesis
by Matti Muhos, Anna-Mari Simunaniemi, Martti Saarela, Delbert Foit Jr., Lada Rasochova
Abstract: Many stage models have been introduced to clarify management priorities during the early stages of business growth. However, many of these models are conceptual and universal, providing only limited benefits to specific industries and business contexts. The early stages of technology-based ventures have attracted interest, while little attention has been paid to the early stages of service-based firms. This study examines the early stages of growth in service-based firms. The following research questions are posed: What are the basic characteristics of recent empirical studies on the early stages of service-based firms? What are the themes and sequential patterns in the early stages of service-based firms as revealed in the recent empirical literature? This study provides a meta-analytical review designed to answer the research questions. A group of recent empirical-stage models of the early stages of service-based business were selected for meta-analysis and synthesis. The meta-analysis integrates the findings of these models and introduces a self-evaluation framework for the early stages of service-based companies.
Keywords: business development; enterprise development; growth management; growth process; meta-analysis; review; service-based firm; stages of growth.
Heuristics of the internationalisation of SMEs: a grounded theory method
by Hossein Khorrami, Mohammad Zarei, Behrouz Zarei
Abstract: Heuristics can be an applicable tool, utilised in simplified strategies for solving ill-structured and highly uncertain problems, alike internationalisation of SMEs. International Entrepreneurship (IE) researches suggest; paying more attention to discovering the valuable individual initiatives used in internationalisation of SMEs. The research investigates the Iranian internationalised SMEs to provide a set of heuristic principles for running a successful internationalisation. Analyses of the interview data suggest that heuristics is an instructional tool of internationalisation, which facilitates and accelerates the process of SMEs' internationalisation. The model of internationalisation based on heuristics is extracted from the systematic grounded theory (GT) which originally applies for increasing the chance of discovering the unanticipated happenings as an inductive theory-discovering methodology. The results show, by applying the heuristics-based model of internationalisation, SMEs can make significant contributions in IE such as position stability in foreign markets, problem-solving tools in internationalisation process, sales growth, profitability, and added value generation.
Keywords: a foreign market; developing countries; enterprise development; entrepreneurial intellectuality; grounded theory; growth strategies; heuristics principles; international entrepreneurship; internationalisation; networking; SMEs; small-and medium-sized enterprises; strategic factors; taxonomic analysis.
Analysing innovation-driven enterprises' stakeholders in two spatial ICT ecosystems
by Jukka Majava, Tuomo Kinnunen, Del Foit, Pekka Kess
Abstract: Innovation-driven enterprises (IDEs) engage with various stakeholders during new product development and commercialisation. Spatial ecosystems in which these enterprises operate provide them with the local business environment for new innovation development. Our study analyses IDEs' stakeholders in two spatial information and communication technology business ecosystems: one in San Diego, CA, USA and the other in Oulu, Finland. The study analyses the stakeholders' presence and their roles to support innovation. The critical stakeholders for supporting IDEs, such as providers of different forms of capital and research institutes, are identified. Our findings suggest that IDEs should exploit the spatial ecosystems by interacting with various stakeholders and by gaining access to local resources to create new innovations. The results of the study are beneficial both for managers of new innovation-driven ventures and decision-makers for designing and implementing innovation policies.
Keywords: business ecosystem; ICT; information and communication technology; IDE; innovation-driven enterprise; innovation; spatial context; stakeholder.
Network visualisations of knowledge assets: their value and user experiences for innovation development
by Martha G. Russell, Kaisa Still, Jukka Huhtamäki
Abstract: This paper explores the value of network visualisations for presenting complex knowledge assets to executive decision-makers in order to develop culturally relevant insights for programme development. The value is first addressed with an analysis of network visualisation process called 'Ostinato', an operational context in relation to cognitive fit as a theoretical context. Then, value is explored with an analysis using taxonomy of interactive dynamics for visual analytics. Furthermore, evaluating the usability of visualisation is conducted in the context of the Parisian ecosystem, with board members using network visualisations to explore complex multi-layered knowledge about relationships among key executives, companies and financing organisations. All findings support the argument that value of knowledge assets in problem-solving performance depends on both format of the data and nature of the task. Furthermore, the findings support the importance of continual involvement and interaction between data analysts and decision-makers; they highlight the importance of considering knowledge assets as value drivers that can support knowledge-based innovation.
Keywords: ecosystem; innovation development; network visualisation; user experience; visual analysis tool; visual analytics.
Manufacturing strategies in different environments: does equifinality or a dominant strategy exist?
by Shaohan Cai
Abstract: This study addresses two essential issues related to equifinality: (1) whether firms can choose different but equally effective manufacturing strategies for different environments (equifinality) and (2) whether there is one strategy adopted by more firms than others (dominant strategy) in each individual environment. With data collected from 434 Chinese manufacturing companies, this study identifies a four-cluster taxonomy of business environments (harsh, labour munificent, stable and low-cost) and a four-cluster taxonomy of manufacturing strategies (mass servers, marketeers, manufacturing emphasisers and low emphasisers). The analyses show that dynamism and munificence exert joint effects on equifinality and the existence of a dominant strategy.
Keywords: China; equifinality; manufacturing strategy; taxonomy.
Key elements for achieving an enterprise's performance in the areas of sustainability
by Kongkiti Phusavat, Chavatip Chindavijak, Sasivimol Meeampol, Pekka Kess, Achmad Nizar Hidayanto
Abstract: The study aims to confirm the key elements for an enterprise's performance in the areas of sustainability. These elements (anticipation, concern, leadership, communication, capability, planning, execution, performance and report) have been earlier derived from the previous study which is based on the literature reviews and the interviews with the researchers and practitioners from Thailand and Finland. The focus-group and survey approaches are applied for this confirmation or verification. For the focus-group approach, there were altogether 30 participants while there were 504 enterprises completed the questionnaire. After analysing the results with the criteria, the nine key elements are deemed to reflect the term sustainability. They provide the premise for an enterprise to consider when attempting to deal with the term sustainability. Sustainability has been viewed as the next step to ensure long-term business competitiveness for an enterprise after productivity and quality, environment, occupational safety and health, and corporate social responsibility.
Keywords: enterprise development; enterprise performance; sustainability.
How Malaysian managers persuade employees' innovative behaviour?
by Hadi Farid, Fatemeh Hakimian, Mohd Nazari Ismail
Abstract: The intention of this paper was to examine the impact of six selected leaders' behaviours on employees' innovative behaviour through the mediating role of leader-member exchange (LMX). A total number of 155 pairs of employees and their immediate managers participated in this study. Employees rated their managers' behaviours and managers evaluated their subordinates' innovative behaviour. Both managers and employees answered to LMX measurement. Then, the agreements of employees' and managers' LMX rating were applied based on the results of within and between analysis (WABA). The obtained data were analysed through structural equation modelling-partial least square (SEM-PLS). The findings revealed the significance of mediating role of LMX in relationship between behaviour of recognising, taking risks for change and paternalistic with employees' innovative behaviour. Thus, this study has contributed to the leadership literature in addition to providing a clear vision for Malaysian managers to increase employees' innovative behaviour via improving exchange relationship.
Keywords: employees' innovative behaviour; leaders' behaviour; leader-member exchange; paternalistic leadership; recognising behaviour; taking risk behaviour; within and between analysis.
Characterisation of CSR practices in Spanish SMEs through a cluster analysis
by María Paula Lechuga Sancho, Manuel Larrán Jorge, Jesús Herrera Madueño
Abstract: Small- and medium-sized enterprises (SMEs) are the main driving force in European economic growth and as such this research aims to provide an insight into SME corporate social responsibility (CSR) practices. Within this scope, the objective is to analyse the level of development of SR practices for a sample of 509 Spanish SMEs, and the impact that certain explanatory factors such as size, sector, ownership structure or genre of the manager have on the level of implementation of sustainable practices. The main results of this study reveal that CSR has already been incorporated into the daily management of such companies being these practices essentially internally focused. Also, our results imply further evidence confirming the statements of many authors who have pointed out the sector, size and being women at charge of a firm, as key explanatory factors, which affect the company in adopting and implementing CSR practices in the strategic plans of SMEs.
Keywords: cluster analysis; corporate social responsibility; empirical research; small- to medium-sized enterprises; Spain.
Strategic alignment of product portfolio and supplier management
by Jordan Verrollot, Arto Tolonen, Janne Harkonen, Harri Haapasalo
Abstract: Product portfolio management (PPM) and supplier management (SM) are integrally linked through products, buy items and related suppliers. However, the connection and alignment between these important activities are not particularly highlighted in the extant literature. Hence, the main objective of this study is to clarify the challenges in connecting PPM and SM to illustrate how they can be aligned. This study recognises and links the roles of PPM and SM to analyse and manage the technical product portfolio, buy items and suppliers according to aligned strategic targets. PPM impacts the performance of SM by regularly renewing the product portfolio, and therefore allowing SM to manage only the buy items and related suppliers that create the highest strategic fit, maximised value and balance for the company. This study recognises the need to align PPM and SM to enhance competitiveness and to focus on the strategic and profitable products and associated suppliers.
Keywords: product portfolio management; strategic alignment; supplier management; supply management.
Analysing the online wine tourism strategies of American and Italian wineries
by Roblyn Simeon, Lutfus Sayeed, Alberto Onetti, Marco Talaia
Abstract: As competition intensifies in the global wine market, online wine tourism has become a crucial marketing dimension for wineries and wine regions around the world. This paper presents and extends the proven attracting, informing, positioning and delivering framework for examining the strategic orientation of winery websites. Two nations that are at the forefront of the competition between old world and new world wines are the USA and Italy. Qualitative and quantitative analyses showed that American wineries were generally better at projecting a wide-range virtual branding characteristics. Italian wineries were better at the attracting dimension, and they focused mainly on local characteristics.
Keywords: AIPD; California and Italian wineries; online wine tourism; virtual branding; wine marketing strategies.
Special Issue on: Governance, Social Responsibility and Business Ethics
The impact of banking strategies on the net interest margin of Tunisian banks
by Monia BEN LTAIFA
Abstract: The purpose of this paper is to examine empirically the impact of banking strategies on the performance of banks. To do so, we use a sample composed of 11 Tunisian banks during the period of study from 2000 to 2015. We employ a regression by Ordinary Least Square. The empirical findings show that a portion of bank strategies on specific characteristics of banks have an impact on deposits/liabilities ratio. Also, we find that bank strategies on specific characteristics of banks and on financial development environment have an impact on the net interest margin of banks Tunisian during the period of study.
Keywords: banking strategies; bank performance; net interest margin; panel data.
Credit risk stress testing: Theory and practice The Spanish evidence
by Ahlem Selma Messai, Mohamed Imen Gallali
Abstract: This paper presents a new methodology to estimate banking system credit portfolios losses. For this purpose, we used quarterly data for the period from 2000 to 2011 in order to estimate unexpected losses in the credit portfolio for four Spanish sectors under extremely bad conditions. Our results show that macroeconomic shocks (extreme inflation, GDP and unemployment rates) affect negatively the Spanish banking system. The unusual thing about this study is that it was conducted with different sectors (industry, construction, agriculture and services). We find that construction was the most damaged sector. Our study will discuss the reasons for adopting stress tests and will provide solutions to prevent crises and to absorb losses especially in Spain.
Keywords: credit risk stress testing; non performing loans; Spanish sectors; loss distribution.
Market Efficiency: An Information Entropy Perspective
by Imen Mahmoud, Kamel Naoui
Abstract: The aim of this paper is to examine market efficiency from an information entropy perspective. Specifically, we compare a number of emerging and developed markets in order to pin point efficiency of these markets in time. The results indicate that these markets show a dynamic market efficiency unlike what static tests seem to suggest. Moreover, emerging and developed markets are less efficient. This lower efficiency generally comes in parallel with crisis periods (financial or political). Indeed, it has been shown that markets undergo efficiency and inefficiency periods. When the market is efficient, market returns move following a random walk and information entropy reaches its maximum. However, when an event is certain, entropy decreases and the market is considered inefficient. When the market is inefficient, prices do not instantly reflect new information. This replicates an information comprehension process, through a learning process which is often considered time-consuming
Keywords: market efficiency; Shannon entropy; information approach.